The End of the Canada Savings Bond (CSB)
In the 2017 Federal Budget, the Government of Canada announced its decision to phase out the Canada Savings Bond program. Effective November 1, 2017, your employees will no longer have the option to contribute or transfer in new funds into the plan.
Your employees may ask questions regarding what options are available to them if they want to continue contributing into a similar saving vehicle. If the CSB contributions were being deposited into an RRSP program, the employee would always have the option of continuing to contribute to a Group RRSP, if available. If the CSB were being deposited using after-tax dollars, the most suitable investment option would be a Group TFSA, if available. A Group TFSA will allow the invested after-tax dollars to continue to grow, without incurring a T5 slip (received for interest income earned on a product).
To find out more information about what other options are available to your employees as a replacement to the CSB program, please reach out to your consultant.